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Daniel Adaji
The Federal Executive Council (FEC) has approved a comprehensive National Integrated Electricity Policy (NIEP) to overhaul Nigeria’s electricity sector and fast-track the implementation of power reforms.
The policy, ratified during the FEC’s weekly meeting on Monday, sets a clear roadmap for transforming the Nigerian Electricity Supply Industry (NESI).
It aligns with the objectives of the Electricity Act 2023 and aims to drive sustainable electricity generation, transmission, and distribution across the country.
Developed by the Federal Ministry of Power and submitted to President Bola Tinubu in December 2024, the policy outlines strategic interventions to address critical issues plaguing the power sector. These include infrastructure deficits, weak regulatory frameworks, and inadequate investment.
Minister of Power, Chief Adebayo Adelabu on Monday said implementation of the policy has already commenced and will now accelerate following the President’s formal approval.
“This National Integrated Electricity Policy and Strategic Implementation Plan is a comprehensive roadmap developed to guide all stakeholders — the Federal and State Governments, market participants, investors, and indeed all Nigerians — through this transition,” Adelabu stated.
He described the Electricity Act 2023 as a turning point for Nigeria’s power industry, noting that it mandates the Federal Government to publish the NIEP within one year of the Act’s commencement.
The NIEP replaces the outdated National Electric Power Policy of 2001. It emphasizes decentralization through the development of State Electricity Markets (SEMs), promotes renewable energy integration, and strengthens consumer protection mechanisms. The policy also prioritizes energy efficiency, climate change mitigation, and gender and social inclusion.
According to the Minister, the policy is the product of wide consultations with stakeholders across public and private sectors, civil society, academia, and development partners. It sets out clear roles for each actor in the power value chain and establishes frameworks for governance, legal compliance, and commercial regulation.
Structured into eight chapters, the policy covers Nigeria’s electricity sector history, market design, regulatory reforms, innovation, local content development, and a shift towards a low-carbon economy.
Adelabu stressed that the NIEP is a “living document” that will evolve with the needs of the power industry, and reaffirmed the government’s commitment to building a reliable and modern electricity supply system.